High investment costs and a lack of know-how stop many companies from investing in digital innovations such as innovative Supply Chain Management Software. Nevertheless, the Corona crisis in particular showed that digital pioneers benefit from the investments they have previously made. Thanks to a digital information structure, they were able to react faster and more efficiently to disruptions and adapt better to new circumstances. At the same time, there were also significant cost advantages, according to a PWC study.
High investment costs and increasing complexity slow down companies
A volatile global market environment, increasing competition and the need to reduce costs are some of the reasons why digitally efficient processes are becoming increasingly important. Among other things, global sourcing and growing customer demands for more flexibility in goods delivery and product selection, are increasingly reinforcing this trend. On the other hand, the high investment costs for digitization projects prevent a large number of companies from investing in the digitization of their processes. Time and high costs are considered to be one of the biggest obstacles on the way to the digital supply chain. However, this poses the risk of slowing down necessary investments in the future through cost-cutting programs and thus being left behind by the market.
Digitalization also increases the demands on IT departments since not only the supply chains, but also the IT landscapes are becoming increasingly more complex. At the same time however, the necessary know-how and personnel resources are often lacking to implement the complex digital integrations in the existing system landscape.
Documentation and long communication paths – not only time but also underestimated cost drivers
Documentation and cross-company communication are often among the cost drivers that are still rather ignored. At the same time, precisely these areas offer a high potential for savings. Lengthy communication channels due to countless emails and telephone calls not only cost a lot of time, but also have an impact on other processes. Deliveries are delayed and may arrive late. Incorrect, missing or late documents also delay ongoing transport processes and cause the associated costs to skyrocket. Streamlining processes through easy-to-implement supply chain management software with innovative collaboration tools helps companies avoid delays and inefficient communication.
Reduce costs with lean software solutions
Lean software solutions offer the potential to drive the digitization of the supply chain without high investment costs and implementation effort, and help to save costs in both the short and long term. At limbiq.com for example, we are developing a browser-based SaaS solution that allows users to integrate the software and connect partners without much implementation effort. For more information on this topic, we would be happy to welcome you to one of our webinars. You can find more details about the current webinar program on our event page.